Decentralized Finance, Non-Fungible Tokens and Money Laundering: Is the European Union Legal Framework Ready to Address Financial Crime Risks Arising from the Crypto Business while Fostering Innovation?

Abstract

This thesis offers an analysis of Decentralized Finance underpinnings, particularly Non-Fungible Tokens and the challenges these innovations may pose over the European Union AML/CTF legal framework. On the one hand, the thesis will analyze the changes these innovations may bring to the art market and creative industry. On the other hand, it will focus on the financial crime risks arising from the increased ease to layer the crime proceeds on the blockchain.

Keywords: Decentralized Finance, Cryptoassets, Non-Fungible Tokens, Blockchain, Anti-Money Laundering, Counter Terrorist Financing, Tax Evasion, Financial Crime, EU Laws, EU AML Directives

JEL Classification: K29, K39